A very critical situation one faces in life is how much to save and how much to spend (including debt payments)! But there’s actually no definite answer to that question!
I can never tell you how much you should save. Seriously, the more you save, the better!
Money is one of the most important components of a happy and successful life! The truth is, money comes in your life to be stored away and not to be abused!
Hence be brilliant, be sensible, and roll the money ball, only to be grown bigger!
How saving money makes you happier: (Psychological view)
Saving enough money for the future brings in you a sense of financial freedom and peace.
So, in what ways financial stability influences the mental health of a person?
1. Probably money is not the most important thing in life, but we measure a great deal of our success with our wealth!
As you start to save money, you feel optimistic and get motivated to save more. Also with the more you save, the more financial strength you have.
In many researches, it has been seen that people who don’t have adequate savings are unhappy in their life. They suffer from insecurity and financial anxiety. They are scared to make costly decisions and brainstorm too much before planning something big!
All these lead to poor mental health conditions.
Just consider once for yourself, how long do you think you can survive with paranoia, financial stress and money guilts?
2. Money has been one of the main reasons for divorces, break-ups, addictions and criminal activities, just to name a few!
The last thing you really want to do is walking down the wrong roads because of financial instability! That too when you know you could have done enough savings to make you feel happy and could have led a stable life!
Life is too small to be spent paying penalties. So gear up mate, don’t let ill financial health ruin your happiness and love!
3. Debts mean a huge mental pressure. They pin you down every time you look at your payments and become a barrier to your savings and investment plans!
Often you blame debts for your poor financial situation! Say, due to your debt payments you can’t do any savings! But you can do both of them together without any hassle. This we will discuss later in this post.
There have been many instances where people have taken their lives just because they couldn’t deal with their debts!
Calls and visits from the collection agencies became so harassing that all they wanted was to escape from this life. But just imagine how happy and stress-free you will be if you can both save and clear off debts at the same time!
How Saving money brings happiness from a financial perspective:
There should be no second thought when you plan to do savings! There can never be an alternative to it!
Savings is the art of money management! Savings is all you can do to save yourself from a financial downfall!
Let me break it down for you:
- If you have good savings with you, clearing off debts will be pretty much easier in the long run as you will be able to do extra payments and get rid of debts faster
- For a successful and happy retirement life, you need savings. With savings, I mean good savings! If you don’t have enough money to sustain your life in your non-income days, then you will be in real misery for sure!
- Future predictions are the toughest of all things. We really have no idea what time holds for us! In cases of medical or financial emergency, apart from your insurance, only your personal savings can help you out!
- Plus, as you age, the market will also gradually suffer inflation. That means the money you have now will decrease in worth later! Hence it’s always better to have more savings in hand. Because what you can get for $2 today, might cost you $5 after 10 years!
Practically the list is endless.
So, it’s better you go ahead right now and start to water the plant called ‘savings’!
Which one should come first, clearing debts or savings?
This part is very flexible.
You can usually do both at the same time. All you need to do is plan a suitable budget.
So, if you have huge debts around you like in 5 figures or so, then you can definitely skip savings for the first few months. But if your debts are manageable and you think you can easily make some room for your savings, then you can go for it!
To clear debts and achieve savings goals at the same time, you can try out the backward budgeting. It’s not that difficult; you just have to figure out your monthly payments for your debts, that’s all!
If your income per month is somewhere around $5000, and you have to pay $500 each month for your debts, then you keep aside this amount each month from your paycheck. Now for savings, you can easily keep away some $200. So, you have in total $700 as a top priority fixed expense. Therefore, you are left with $4300 for your other expenses like utility bills, transportation, grocery, etc!
That was just a regular example of backward budgeting to give you a hang of saving money and clearing debts simultaneously!
If you can successfully deal with both of them, it will definitely help you feel positive and keep you motivated and happy!
The Oak View Law Group and how you can save more on your debt payments:
Oak view law group(OVLG) has remained a pioneer in debt management since 2007. The company has helped people like you, who were worried about debts and savings!
We always look for the opportunity to make way for savings as we handle the debts carefully, maintaining a complete transparency between you and us!
If you are eager to save money on your debt payments, then figure out how much you can save and how much debt you have to pay with the help of our free online debt calculators!
Hence, we advise you to find out your suitable debt relief options and see how much you can save as you clear your debts at the same time!
Our motto is to save you a good amount on your debt payments because we believe “Savings is Happiness”!